NKE: The Second Of Many Headcount Announcements

Today's announcement was an addendum to what we already know. The mgmt change was a good one. Unfortunately, we're still in year 2 of a period of flat earnings over 4 years.
Nike added color today to its restructuring plans announced last month. Eunan McLaughlin, former VP/GM of EMEA, will now run the Subsidiaries and he’ll be replacing Lee Bird, who only joined three years ago.

Three years might not sound like an incredibly short tenure, but at Nike it is. That organization has a unique way of expunging objects that do not belong, like Bill Perez (and for those witty clients of mine who are about to fire me an email – I’ll pre-empt you in reminding you that my departure from Nike was not one of those!). Lee Bird did not make the cut. Is it a shocker that this happens days after Nike announces that they are writing off over 60% of Umbro – a sub that they acquired halfway through his tenure? No, probably not. The subs as a whole (except Converse) did not exactly crush it over the past two years either.

The good news is that I like Eunan – a lot. He did a lot for EMEA – making a lot of tough decisions, and taking the company into the CEMEA region which now accounts for 25% of EMEA’s rev base.

This is a good move. We’ll see more of them. The bad news is that now you have to go back and read the post I put up yesterday that walks through the “flat earnings over four years” theme.

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